Improving land use management

Oct 13, 2025 by vinooalluri.com 24 views

Economic Efficiency Analysis of Local PIR Business in the Use of Production Factors

Introduction

The Local Core People's Rejuvenation Program (PIR) is a government initiative aimed at revitalizing local economies by empowering local communities to manage their own resources. One of the key sectors that PIR focuses on is agriculture, particularly oil palm plantations. In this study, we aim to analyze the effect of various production factors on the yield of oil palm plantations managed by farmers in the Harapan Tani Cooperative (KUD) in Sei Limbat, Kecamatan Seasi, Langkat Regency. Our main focus is on six dominant factors of production in the area: land area, pesticides, urea fertilizer, TSP (Triple Super Phosphate), KCL (Potassium Chloride), and labor.

Methodology

This study uses the Purposive Random Sampling method to select a sample of farmers involved in the Local PIR Business. The sample size is determined based on the availability of data and the representativeness of the sample. We use a multiple linear regression model to analyze the effect of the six production factors on the yield of oil palm plantations.

Effect of Production Factors

Our analysis shows that the land area variable (X1) has a significant positive effect on the level of production. This means that the more land owned by farmers, the higher the production results obtained. This confirms the importance of land area in supporting the productivity of oil palm plantations.

On the other hand, the use of pesticides (X2) shows a negative effect on the level of production, but is not significant. This can be interpreted that excessive or incorrect use of pesticides may actually reduce results, showing that the management of the use of pesticides needs to be considered further. For the variable urea fertilizer (X3), the effect is also positive and significant, indicating that the use of appropriate urea fertilizer can increase the production of oil palm plantations.

Meanwhile, the TSP (X4) and KCL (X5) variables show an insignificant negative effect on the level of production. This might indicate that inappropriate fertilization combinations or use that is not in accordance with the needs of plants can have a negative impact on the results. The labor variable (X6) also shows a negative effect, but it is not significant, indicating that this factor needs to be examined more deeply related to the performance and productivity of farmers.

Simultaneous Analysis and R²

When analyzing all variables simultaneously, it was found that variables X1 to X6 jointly significantly affected the Y variable (production level) at a 95% confidence level, with f count greater than F table (3,265> 2,230). This shows that overall, the factors of production studied contributed to the results of oil palm plantations.

Furthermore, the value of R² of 0.2028 shows that around 20.28% variations in the level of production can be explained by the variables studied. Meanwhile, 79.72% of other variations are influenced by other factors that are not included in the analysis. This indicates that there are still many other aspects that have the potential to influence the results of production, such as the practice of aquaculture, climate, or the selection of oil palm varieties.

Conclusion

From this analysis, it can be concluded that the factors of production studied have an important role in increasing the economic efficiency of the palm oil palm plantation business in Kuda Harapan Tani. Increasing farmers' understanding of the use of appropriate production factors, such as the selection of fertilizer types and land use management, is the key to increasing garden products. Further research is needed to understand other factors that influence production, as well as to provide practical recommendations for farmers in increasing the productivity of their oil palm plantations.

Recommendations

Based on the findings of this study, we recommend the following:

Improving land use management: Farmers should be educated on the importance of land use management and how to optimize their land use to increase production.
Selecting appropriate fertilizers: Farmers should be educated on the selection of fertilizers that are suitable for their oil palm plantations and how to use them effectively.
Reducing pesticide use: Farmers should be educated on the risks associated with excessive pesticide use and how to reduce their use to minimize negative impacts on the environment and human health.
Increasing labor productivity: Farmers should be educated on how to increase labor productivity and reduce labor costs to increase their economic efficiency.
Further research: Further research is needed to understand other factors that influence production, such as the practice of aquaculture, climate, or the selection of oil palm varieties.

Limitations

This study has several limitations, including:

Sample size: The sample size is limited, which may affect the generalizability of the findings.
Data quality: The quality of the data used in this study may be affected by errors or biases in the data collection process.
Model specification: The multiple linear regression model used in this study may not capture all the complexities of the relationships between the variables.

Future Research Directions

Future research should focus on:

Understanding other factors that influence production: Further research is needed to understand other factors that influence production, such as the practice of aquaculture, climate, or the selection of oil palm varieties.
Developing practical recommendations: Further research is needed to develop practical recommendations for farmers in increasing the productivity of their oil palm plantations.
Improving data quality: Further research is needed to improve the quality of the data used in this study to increase the accuracy of the findings.
Frequently Asked Questions (FAQs) on Economic Efficiency Analysis of Local PIR Business in the Use of Production Factors

Q: What is the Local Core People's Rejuvenation Program (PIR)?

A: The Local Core People's Rejuvenation Program (PIR) is a government initiative aimed at revitalizing local economies by empowering local communities to manage their own resources.

Q: What is the main focus of this study?

A: The main focus of this study is to analyze the effect of various production factors on the yield of oil palm plantations managed by farmers in the Harapan Tani Cooperative (KUD) in Sei Limbat, Kecamatan Seasi, Langkat Regency.

Q: What are the six dominant factors of production in the area?

A: The six dominant factors of production in the area are:

Land area
Pesticides
Urea fertilizer
TSP (Triple Super Phosphate)
KCL (Potassium Chloride)
Labor

Q: What is the significance of land area in supporting the productivity of oil palm plantations?

A: The analysis shows that the land area variable (X1) has a significant positive effect on the level of production. This means that the more land owned by farmers, the higher the production results obtained.

Q: What is the impact of excessive or incorrect use of pesticides on the level of production?

A: The use of pesticides (X2) shows a negative effect on the level of production, but is not significant. This can be interpreted that excessive or incorrect use of pesticides may actually reduce results.

Q: What is the role of urea fertilizer in increasing the production of oil palm plantations?

A: The variable urea fertilizer (X3) shows a positive and significant effect, indicating that the use of appropriate urea fertilizer can increase the production of oil palm plantations.

Q: What is the impact of TSP and KCL on the level of production?

A: The TSP (X4) and KCL (X5) variables show an insignificant negative effect on the level of production. This might indicate that inappropriate fertilization combinations or use that is not in accordance with the needs of plants can have a negative impact on the results.

Q: What is the role of labor in increasing the economic efficiency of oil palm plantations?

A: The labor variable (X6) shows a negative effect, but it is not significant, indicating that this factor needs to be examined more deeply related to the performance and productivity of farmers.

Q: What is the value of R² in this study?

A: The value of R² is 0.2028, which shows that around 20.28% variations in the level of production can be explained by the variables studied.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Sample size
Data quality
Model specification

Q: What are the future research directions?

A: Future research should focus on:

Understanding other factors that influence production
Developing practical recommendations for farmers
Improving data quality

Q: What are the practical recommendations for farmers in increasing the productivity of their oil palm plantations?

A: Based on the findings of this study, we recommend the following:

Improving land use management
Selecting appropriate fertilizers
Reducing pesticide use
Increasing labor productivity

Q: What is the significance of this study in the context of local economic development?

A: This study provides valuable insights into the factors that influence the economic efficiency of oil palm plantations in the local context. The findings of this study can inform policy and decision-making at the local level, and contribute to the development of more effective strategies for promoting local economic development.